Significance

• Flood coverage is particularly important for the most expensive costs such as building restoration and repair, and appliances such as the furnace. Flood insurance also reimburses costs for restoration or replacement of carpeting, furniture and personal possessions.
  
  

Limitations

• Usually flood insurance has limits on how much coverage is supplied for basements.
  
  

Requirements

• The United States federal government requires that homes with mortgages in specific flood-prone areas carry flood insurance. Homes without mortgages do not have this requirement.
  
  

Expert Insight

• Although most people do not have flood insurance, governmental statistics show that flooding occurs in all 50 states, with 25 percent of all flood insurance claims occurring in areas where risk is low or moderate. More weather-related property destruction is caused by flooding than any other event.
  
  

Considerations

• People who avoid buying flood insurance typically believe they will receive disaster assistance if a flood does occur, but very few floods are ever officially declared as disasters.